The Japanese yen suffered a major defeat in the foreign exchange market yesterday as gave up some ground against almost all major currencies. The yen fell 49 pips versus the dollar and the euro, and dropped 72 pips versus the pound.
The yen’s sell-off was the result of BOJ Deputy Governor Nishimura’s comments. He suggested in a speech yesterday that there is the potential for further easing past 2013.
No major data scheduled to be released from Japan today but don’t expect the yen to sit still and be quiet! There are a bunch of interest rate decisions (BOE and ECB) set to happen today that could indirectly affect the yen’s price action.
The yen gained a breather against its intraweek losses yesterday when risk aversion settled in the euro region. EUR/JPY fell by 91 pips while GBP/JPY slid by 37 pips. But what about the yen’s price action against the comdolls?
Japan didn’t release any economic report yesterday so the yen traded on risk sentiment and country-specific factors. It ended up on the red side of the charts when optimism for the commodity-producing countries inspired traders to sell the yen.
Only the leading indicators data at 6:00 am GMT is expected to print today, so you might want to watch for news that might come out from the other major economies. More specifically, watch out for the U.S. NFP report at 2:30 am GMT as it could finally break the range on USD/JPY’s daily chart and give a clear direction on the yen’s price action against its other counterparts.
The yen found itself under intense selling pressure last Friday as the U.S. non-farm payrolls report smashed expectations. Thankfully, the yen was able to hold on and recover its losses after the selling frenzy died down. USD/JPY started the day at 82.36, rose to 82.83, and then fell back down near its open price at 82.40.
No major data release from Japan last Friday but earlier today, we did see some medium-tier data releases.
The Current Account balance showed that Japan was in surplus again in October after the 140 billion JPY deficit experienced the month prior. The Current Account Balance was now at 410 billion JPY, which was much higher than the 250 billion JPY forecast initially expected.
The final GDP was revised lower though. It showed that Japan’s economy actually contracted 0.9%, which was more than the initially estimate of 0.8%.The market took this negatively and led to a slight decline in the yen’s value.
Not much event risk on Japan’s calendar today so do not expect a lot of volatility from yen. Watch those previous support and resistance levels, as they could hold!
The yen’s price action yesterday was as mixed as a margarita when it gained on the Greenback but lost to the euro and the pound. And to think that Japan actually printed economic data!
Aside from the ones that I outlined yesterday, we also saw a drop in Japan’s consumer confidence. The report came in at 39.4, which is a bit lower than the 39.7 reading in October. The economy watchers’ sentiment ticked higher at 40.0 though, after clocking in at 39.0 in October. But take note of the preliminary machine tools orders data, which fell by 20.7% in November after already slipping by 6.7% in October.
Fortunately for the yen, market players are all gung ho about the U.S. Fiscal Cliff, the Fed’s upcoming FOMC minutes, and the politicking in the euro region. So since the Land of the Rising Sun isn’t scheduled to print any major data today, better watch these issues closely and see how they will impact the yen’s rep as a safe haven currency.
The Japanese yen got knocked out in yesterday’s trading as USD/JPY closed 17 pips up from its 82.33 open price while EUR/JPY landed back above 107.00 and closed at 107.28. Will the yen be able to recover today?
Although Japan didn’t release any economic reports yesterday, traders remained very bearish on the yen after realizing that Japan is officially back in recession. Without any major events on today’s schedule, this downbeat sentiment could keep weighing on the yen for the rest of the day.
If you’re thinking of trading USD/JPY though, don’t forget that the U.S. Fed is set to make their monetary policy statement today. Drop by my U.S. commentary or check out Forex Gump’s FOMC preview, okay?
The yen found itself holding on to the short end of the stick in yesterday’s trading session. It came out as the biggest loser in the foreign exchange market as it was the currency that gave up the most ground to the dollar, the pound, and the euro. USD/JPY climbed to 83.19 from 82.50, GBP/JPY rose to 134.42 from 132.92, and EUR/JPY flew to 108.82 from 107.28.
There are no event risks on Japan’s economic cupboard today. But just like yesterday also, I think we’ll still see a lot of volatility volatility. There are a lot of high profile economic data scheduled to be released in the U.S. that could also affect market sentiment and move the yen. Specifically, the U.S. retail sales, producer price index, and jobless claims will all be released.
The Japanese yen continued to crumble under bearish pressure yesterday as it posted losses against almost all major currencies. EUR/JPY rose to 109.28 from 108.82, GBP/JPY jumped to 134.65 from m 134.41, and USD/JPY climbed to 83.58 from 83.18.
The yen lost due to improved risk appetite. Apparently, the release of the next tranche of bailout fund for Greece amounting to around 49.1 billion EUR has finally been approved. Greece will be receiving approximately 34 billion EUR in the following days, with the rest following in Q1 2013. The Eurogroup stated that Greece’s reforms will enabled the country to achieve sustainable growth.
Earlier today, Japan’s Tankan Index was released. It showed that the manufacturing sector for isn’t doing well in Q4. It printed a reading of -12, down from the previous quarter’s -3 and the -9 forecast. The Non-Manufacturing sector also followed suit as the reading fell to 4 from 8.
No more data on Japan’s forex calendar but today is a Friday, which means we could see a lot of volatility as traders close shop for the weekend. If you’ve been riding the yen’s sell-off, be extra careful today for the possibility of a pullback.
Big losses for the yen to start the week! As Japan’s general election results came out, the yen weakened strongly, resulting in huge weekend gaps. EUR/JPY gapped up 140 pips to start the week at 111.20, while USD/JPY jumped 97 pips to begin at 84.42. Will the yen keep falling or will it make up ground?
It seems like yen bulls didn’t take Shinzo Abe’s victory well. His Liberal Democratic Party locked in 294 seats in the 480-member lower house of parliament, which means Abe may finally get the chance implement the super-easy monetary policy that he’s been calling for.
With him in command, investors believe that we could see more stimulus measures before the year comes to an end. He has been asking for the BOJ to increase its inflation target from 1% to 2%. In light of all this, some say that the market may even take USD/JPY back up to 85.00!
No major reports on tap today, but do tune in on Thursday for the BOJ rate statement. The central bank might just ease its monetary policy one last time before the holidays!
The yen snatched back some of its losses yesterday after it got aggressively sold off following the weekend elections. USD/JPY fell by 60 pips while EUR/JPY suffered an 89-pip drop.
Japan didn’t release any economic report yesterday, but profit-taking from the strong yen selloff might have influenced the yen bears to attack. But are the bulls done with their cause this year, or are they just gearing up for another run?
Japan won’t be releasing reports again today, so focus will most likely shift to any comments that Shinzo Abe will make regarding the BOJ’s monetary policies. Japan’s incoming leader wasn’t shy about his calls for looser monetary policies, so it will be interesting to see whether or not he will butt heads with BOJ Governor Shirakawa, who is a staunch supporter of the BOJ’s independence.
It looks like the markets are betting on the BOJ to roll out aggressive measures in tomorrow’s rate statement! They dumped the yen like cray-cray, leaving USD/JPY 37 pips higher at 84.19 and EUR/JPY almost 100 pips higher at 111.29.
Tomorrow’s BOJ rate statement should be interesting, because the markets really seem to be expecting blockbuster results from it. They think that having Shinzo Abe and the LDP in command should pressure the BOJ into taking bigger steps to boost the economy. Some say that the BOJ will enhance monetary easing by another 5 to 10 trillion JPY, but there are also others that believe the central bank will do something more drastic.
In any case, it seems that the tides favor further weakness for the yen until the BOJ makes its rate statement early tomorrow morning, so you might wanna think twice if you plan on going against the flow!
And the losing continues! Once again, the yen found itself as the biggest loser in the currency markets, as it lost out against its major counterparts. By the end of the day, USD/JPY was trading at 84.40, up 21 pips from its opening price.
With the BOJ interest rate decision coming up any time now, who knows what might happen to yen pairs! Just know that the current bias is heavily in the yen bears’ favor, as many believe that the BOJ will continue to implement more and more bond purchases. Just tune in regularly so that I can update you on any new developments!
Was the yen holding its breath awaiting the end of the world? It barely moved yesterday! The Japanese currency ended the day unchanged against the Greenback, euro, Loonie, and Aussie and lost a bit of ground to the pound. Hey, that rhymes!
The BOJ’s monetary policy announcement barely had an impact on yen pairs even though the central bank loosened their policy yesterday. Perhaps market participants had already anticipated this move or didn’t know how to react to the announcement, but the BOJ increased its asset purchases from 66 trillion JPY to 76 trillion JPY while keeping its credit lending program unchanged.
While this normally triggers a yen selloff, what probably kept the yen afloat in yesterday’s trading was the fact that the U.S. still hasn’t come up with a plan for the looming Fiscal Cliff and that traders are holding on to the yen as a safe-haven.
There are no other reports due from Japan today so we could see the yen hold its ground in case the U.S. Congress still can’t make any progress with its Fiscal Cliff negotiations. Stay on your toes for any updates!
What a crazy few months its been for the yen! At beginning of October, USD/JPY was trading 78.00. Three months later, the pair is now up at 87.00, and looks liked it could be headed for new highs!
The yen’s troubles continued last week, as it lost out against its major counterparts. No surprises there – the threat that the Bank of Japan will do whatever it takes to weaken the yen has been a recurring theme for quite some time now!
No major economic data headed our way from Japan this week, but that doesn’t mean we won’t see any action on the yen pairs! Make sure you hit up my other commentaries for other reports that could drive the yen pairs this week!
When will the bleeding stop? It looks like the New Year brought nothing new to the yen’s scorecard. The Asian currency extended its losses to the dollar, finishing yesterday’s trading with a 38-pip loss at 87.12. Meanwhile, against the euro, the yen gave up 39 pips closing at 114.79.
Aside from the pick-up in risk appetite brought about by a last-minute deal in the U.S. senate that kept the country from falling over the fiscal cliff, the yen also found itself unable to hustle some muscle no thanks to dovish remarks on the home front. Japanese Prime Minister Shinzo Abe reiterated his plans to weaken the currency which gave traders, yet again, another reason to sell the yen. Boo!
Our forex calendar is blank for reports from Japan today. This probably means that we’ll see market sentiment as well as news from the U.S. dictate its price action. So be sure you head on over to my USD commentary to find out what reports you need to look out for!
Why thank you, risk aversion! Yesterday’s dour market sentiment proved to be a boon for the yen as it was able to gain against most major currencies. EUR/JPY, the forex market’s “barometer of risk,” fell to 113.86 from 114.79.
The only currency that the yen wasn’t able to gain an upper hand on is the dollar. Apparently, the FOMC meeting minutes showed that there were actually some members that wanted to slow down on the asset purchases. They said that the bank should probably stop buying bonds before 2013.
It won’t be a holiday anymore in Japan today but its economic docket remains empty. This means that the yen will most likely be driven by market sentiment again. Pay close attention to fiscal cliff talks. If good news comes out of it, we could see the yen reverse the gains it experienced yesterday.
The joke’s still on you, yen! The Asian currency extended its losses against most of its counterparts on Friday. USD/JPY rallied to its 2-year highs at 88.42 before closed the day with a 96-pip gain at 88.13. Meanwhile, EUR/JPY closed around its 17-month high at 115.21, up from its opening price of 113.86.
Without any economic data from Japan, the yen just fell victim to market sentiment. Unfortunately for the forex market’s renowned safe haven, risk appetite picked up following the better-than-expected jobs report from the U.S. Also, the yen’s price action could reflect traders already repositioning their trades ahead of the January 22 BOJ rate decision when the central bank is expected to adopt an inflation target.
Our forex calendar doesn’t have any market-moving report for the yen scheduled until later on this week. This makes me think that data from its other counterparts would continue to dictate its fate on the charts in the coming trading days. With that said, make sure you’re always on your toes for reports released from the U.S. and the euro zone!
Rejoice, yen bulls! Thanks to some positive comments from Japanese government officials, the yen was able to slightly gain versus other major currencies yesterday. EUR/JPY fell to 115.18 from 115.30 while USD/JPY dropped to 87.84 from 88.13.
According to Finance Minister Aso and Economics Minister Akira Amari, it’s important for the government to work closely with the BOJ to share a price target (inflation) and show the markets in achieving it.
Just like yesterday, we’ve got nothing on Japan’s economic cupboard today. This means that the yen will probably get its price action cues from events taking place in other major economies and market sentiment. Let’s see if the yen will be able to continue to recover its losses today.
Domination baby! The yen caught fire yesterday, as it managed to pull ahead of its major counterparts. EUR/JPY closed 109 pips lower to finish at 114.08, while GBP/JPY ended at 140.03, down 144 pips on the day.
Strange behaviour by the yen yesterday, as one would have expected the yen to continue to sell-off on news that the Japanese government would be purchasing ESM bonds from the euro zone to the tune of 7 billion EUR worth. Normally, this would have weakened the yen, but I suppose that traders are beginning to price in a less dovish BOJ statement due later this month.
Nothing lined up today, but lets see if there’s a follow up to the yen’s strong rally yesterday. Take note that this was the yen’s largest gain over the past few months, so this could be part of a larger, much needed correction in yen crosses.
The yen experienced a lot of pain in yesterday’s trading session as it lost against most major currencies. The currency gave up 56 pips to the dollar, 42 pips to the euro, and 53 pips to the pound.
As I mentioned yesterday, the only real major event that took place in Japan was the announcement that the government would purchase bonds from the European Stability Mechanism (ESM). The government stated that the move would hopefully reduce uncertainty in the euro zone and lead to a more stable yen.
Today, only Japan’s current account balance for the month of November will be published. It’s set to come out at 11:50 pm GMT and is expected to show a 310 billion JPY surplus. In September, the surplus was at 410 billion JPY. A falling current account balance is normally considered bearish for the domestic currency. Let’s see if the negative expectations will take the yen lower again.
And the sell-off continues! After days of consolidation, yen pairs finally resumed their uptrend, with several pairs hitting hundred pip gains. EUR/JPY rose an impressive 230 pips to finish at 116.87, while GBP/JPY also nearly hit the 200-pip gain mark, ending the day at 142.44.
The combination of good Chinese trade data and a positive reaction to the ECB interest rate decision helped boost risk appetite yesterday. Of course, this spelled bad news for the yen, which had been on a major losing streak prior to this latest round of consolidation.
Earlier today, current account figures were released and printed a smaller-than-expected deficit of just 230 billion JPY. Expectations were that it would come in at 310 billion JPY for last month. Take note that this number has been falling, which could be a result of yen’s strength over the past few years. Now that the currency’s value is dropping sharply, let’s see if this will have a positive impact on Japanese exports, which should lead to a trade surplus.